Toronto, Canada, June 8, 2006 – ELORO RESOURCES LTD. (ELO: TSX Venture Exchange) (“Eloro” or the “Company”) is pleased to announce that it has signed a Letter of Agreement with Cambior Inc. allowing Cambior to earn a 50% interest in three (3) of Eloro’s James Bay Gold District properties, in the La Grande volcano-sedimentary belt located north of Goldcorp Inc.’s Eleonore Gold Deposit area. The Eloro properties involved in the transaction are the Lemoyne North, Sakami East and Taďga claim blocks.
Under the terms of the agreement Cambior has an option to earn a 50% in Eloro’s Lemoyne North, Taďga and Sakami East properties by spending C$ 2 million on or before June 30, 2010, as follows:
- C$ 300,000 on or before the 1st anniversary date
- an additional C$ 400,000 on or before the 2nd anniversary date
- an additional C$ 600,000 on or before the 3rd anniversary date
- an additional C$ 700,000 on or before the 4th anniversary date
At Lemoyne North, the 48.7 km2 property straddles the northern border of the Poste Lemoyne Property where Virginia Mines Inc. has outlined a 95,000 ounce gold resource grading 14.5 g/t Au, that included intersections of up to 43.09 g/t Au over 11.65 meters (Source: Virginia Mines Inc. website). Eloro recently completed a 2,000 meter drill campaign on the property, and still awaits its drill core assay results. Historic grab sample assays at Lemoyne North (Virginia Gold Mines, 1996, Boreal Exploration, 1998), include up to:
- 4.04% copper, 21.22 g/t gold and 38 g/t silver
- 2.88% copper and 65.42 g/t gold
At Sakami East, the 32.7 km2 property hosts several grab samples with significant assays (Sirios Resources, 1996; Virginia Gold Mines, 1996; Noranda Exploration, 1997), including:
- 5.4% copper and 75 g/t silver
- 14,6% copper and 111 g/t silver
- 4.59% copper, 1.82 g/t gold and 9.6 g/t silver
- 2.1 % copper, 5.17 g/t gold and 8 g/t silver
- 10.2 % copper, 1.14 g/t gold, 263 g/t silver and 1,000 ppm zinc
- 8.9 % copper, 3.11 g/t gold and 194 g/t silver
At Taďga, the 44.3 km2 property hosts grab sample with significant assays (Boreal Exploration, 1999) carrying up to:
- 6.72 g/t gold
- 5.62 g/t gold
- 19.34 g/t gold
- 2.13 % copper and 2.73 % zinc
Mr. Thomas Larsen, President and CEO of Eloro stated, “This is excellent news for Eloro and its shareholders. Eloro’s deal with Cambior is another major development in the James Bay District following Goldcorp’s acquisition of Virginia’s Eleonore Deposit earlier in 2006. Cambior’s decision to take on the Sakami East, Lemoyne North and Taďga properties testifies to Eloro’s goal in the James Bay district of advancing prized gold and base metals projects towards quality resources.” Mr. Larsen added, “Having the annual 600,000 ounce gold producer Cambior as a partner will allow Eloro to achieve its goals more rapidly.”
Eloro Resources Ltd. is a junior exploration company focused on discovering and developing precious and base metal quality resources in the James Bay District of northern Quebec and the Timmins Camp of northern Ontario. Eloro currently has 11 gold-copper-silver properties covering 240 km2 in the La Grande and Eastmain Belts, proximal to Goldcorp’s Eleonore Gold Deposit in the Eastmain Belt. In the Timmins Camp, Eloro is currently exploring the 66 km2 zinc-silver-gold Hurdman Propery, where the Company has recently announced significant assay results from its Winter 2006 drill program, such as 3.7% zinc and 7.71 g/t silver over 11.6 meters core length (ELO-06-01), 2.09% zinc and 40 g/t silver over 11.3 meters core length (ELO-06-04), 2.48% zinc and 10.4 g/t silver over 7.9 meters core length (ELO-06-06), and 0.41% zinc, 166 g/t silver and 49 g/t gold over 0.5 meters core length (ELO-06-12).
The technical content of this press release has been reviewed by Martin Bourgoin, P. Geo., Executive Vice-President, Exploration of Eloro, and the Company’s Qualified Person under the guidelines of National Instrument 43-101.
For further information please contact Thomas G. Larsen, President and CEO or Jorge Estepa, Vice President (416) 868-9168 (tel) or (416) 361-1333 (fax)
Further information is available on the Company’s website at www.elororesources.com
Statements in this release that are not historical facts are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these “forward-looking statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
